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Project management approaches construction and IT
 

Project management approaches construction and IT

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  • The projects are ever changing and moreover the traditional way of project management leads to difficultly in managing the major factors like time, cost and performance. Thus a systematic project management should be used to reduce the distance from idea to achieving project objective [1].
  • What is IT?Defined as set of interrelated components that collect, retrieve, process, store and distribute information to support decision making and control in an organization. In addition it helps in coordination, control, analyze problem, visualize complex subjects and create new products.Why IT? Capital management:- IT (hardware, software and telecommunication) US spending doubled from 17% to 36% during 1980 to 2003. Thus capital management is important. Foundation for doing business:- In US 113 million workers rely on IT (2003 statistics)Productivity:-Strategic advantage and opportunity:- classical advantage of fedex and Wal-Mart.
  • Nonnumeric: Operating necessity, competitive necessity, Product line extension, comparative benefit model.Numeric: Payback period, Average ROI, Discounted cash flow,
  • The inputs on life cycle comparison on IT and construction are also taken from PMI experts via LinkedIn.
  • The reports from many surveys have proved the IT projects have always suffered from successful implementation. The list of few surveys are : The Robbins- Gioia Survey (2001)The Conference board survey (2001)The KPMG Canada Survey (1997)The Chaos Report (1995) The OASIG survey (1995)Short Summary on Chaos Report: The CHAOS study published in 1995 by The Standish Group found that although the U.S spent over $250 billion on IT projects, approximately…31% were cancelled before completion53% were completed but over budget, over schedule, and did not meet original specifications.For mid-size companies, average cost overruns were 182%, while average schedule overruns were 202%.
  • Project performance is measured by the cost or schedule of the project. To evaluate an organization’s project performance, a Cost Index (CI) and a Schedule Index (SI) are developed.. Thesmaller the CI and SI, the better the project performance. Cost Index, CI= Actual Project CostsOriginal Budget , Schedule Index, SI= Actual Project DurationOriginal Project Durationhigher levels of PM Maturity were associated with better cost performance of the project.Moreover, the nonlinear function indicates that there is a diminishing return onhigher levels of PM MaturityThe study was primarily carried outamong top management, seniormanagement and project managers.During the months of February, Marchand April 2004, two hundred responseswere gathered from a balanced group ofcompanies from thirty different countriesacross the globe, of various sizes andfrom various sectors, medium to small,and with differing business structures(subsidiaries, headquarters, etc.). Thedata were gathered via a web-basedquantitative survey, which consisted of50 closed questions and did not includeany face-to-face interviews.
  • Fixed price or lump sum contracts: involve a fixed total price for a well-defined product or serviceCost reimbursable contracts: involve payment to the seller for direct and indirect costsTime and material contracts: hybrid of both fixed price and cost reimbursable contracts, often used by consultantsUnit price contracts: require the buyer to pay the seller a predetermined amount per unit of service
  • !. Rate of return envisaged by the IT projects are varying according to company’s commitment and approach.Very few companies have heavily impacted by the IT transformation in the organization . Globalization :- understand the global economic environment resulting in international trade and the emergence of a global economy. Infrastructure challenge: - Infrastructure for a digital firm is complex and brittle. Ethics and security
  • Before discussing ideas such as how on-going business input in, for example, prioritization of the remaining work prolongs their ability to influence the project, we should take a moment to understand the PMBOK audience. The PMBOK is not just for software projects, or IT projects, it is an industry agnostic guide relevant to construction, engineering, and manufacturing among other disciplines.As a general guide, I think these curves make sense, especially outside of software projects. The ability to influence does decline rapidly once designs are committed and construction begins. Likewise, Risks and Uncertainty also reduce generally later in the project once technical obstacles have been overcome.Software though is different, actually I would hazard a guess that every industry is different really, however software is the one that I know about. Software exhibits a characteristic known as “Extreme Modifiability” meaning we can make many changes, even late in the lifecycle and still be successful. While it would be difficult to move a bridge 3 miles upstream when it was 75% complete; we could choose to move validation logic from the presentation layer, to a middle tier, or a database trigger late into a project.
  • Project performance is measured by the cost or schedule of the project. To evaluate an organization’s project performance, a Cost Index (CI) and a Schedule Index (SI) are developed.. Thesmaller the CI and SI, the better the project performance. Cost Index, CI= Actual Project CostsOriginal Budget , Schedule Index, SI= Actual Project DurationOriginal Project Durationhigher levels of PM Maturity were associated with better cost performance of the project.Moreover, the nonlinear function indicates that there is a diminishing return onhigher levels of PM MaturityThe study was primarily carried outamong top management, seniormanagement and project managers.During the months of February, Marchand April 2004, two hundred responseswere gathered from a balanced group ofcompanies from thirty different countriesacross the globe, of various sizes andfrom various sectors, medium to small,and with differing business structures(subsidiaries, headquarters, etc.). Thedata were gathered via a web-basedquantitative survey, which consisted of50 closed questions and did not includeany face-to-face interviews.

Project management approaches construction and IT Project management approaches construction and IT Presentation Transcript

  • Project Management (PM) approaches inConstruction and Information Technology (IT)By,Mina SalamaSandeep Bangera
  • 15/2/2012Source: Prof. Dr. Florian Dörrenberg module scripts [1]Figure 1: Systematic Project managementNeed of systematic PMPM PM-Construction PM-IT Comparison References2 14/06/2013PM Approaches in Construction & ITSalama, Bangera
  • PM PM-Construction PM-IT Comparison References3 14/06/2013PM Approaches in Construction & ITSalama, BangeraConstruction Project Life Cycle (PLC)Construction project Life Cycle ( PLC)Figure 2: Phases in Construction project life cycle Source: [2] & [3]Concept &FeasibilitystudiesBasicEngineering& DesignDetailedEngineering& Design.• Strategic outline• Overall technical &Economical feasibility• Resource availability• Demand forecast• Risk assessment• Logisticsmanagement• Design Basis report(DBR)• Preparation ofpreliminary drawing’s.• Site investigation• Evaluate the designcriteria.• Detailed projectreport (DPR)• Design drawings• Detail projectspecification• Contract documents• Preparation of Tenderdocument and vendorlist.• Shop drawings
  • PM PM-Construction PM-IT Comparison References4 14/06/2013PM Approaches in Construction & ITSalama, BangeraConstruction Project Life Cycle (PLC)Construction project Life Cycle ( PLC)Figure 3: Phases in Construction project life cycle (Cont.) Source: [2] & [3]Concept &FeasibilitystudiesBasicEngineering& DesignDetailedEngineering& Design.Procurement Construction• Notice to tenders• Technical andcommercial analysis• Contract planning,administer andclosing.• E.g.:- Services,Equipment andMaterial• Design are realizedinto physicalstructures .• Effectivecoordination toachieve: -• Schedule• Budget• Performance
  • PM PM-Construction PM-IT Comparison References5 14/06/2013PM Approaches in Construction & ITSalama, BangeraConstruction Project Life Cycle (PLC)Construction project Life Cycle ( PLC)Figure 4: Phases in Construction project life cycle (cont.) Source: [2] & [3]Concept &FeasibilitystudiesBasicEngineering& DesignDetailedEngineering& Design.ProcurementConstructionStart-up &Implementat-ionOperationorUtilization• Testing ofcomponents• Warranty• Conformance tothe project qualityas per thespecification• As- built drawings• Regularmaintenance offacilities
  • PM PM-Construction PM-IT Comparison References6 14/06/2013PM Approaches in Construction & ITSalama, BangeraManagementOrganizationTechnologyInformationSystemBusinessSolutionsBusiness Challenges• Isolated corporate system• Aggressive competition• Consolidate data• Monitor daily performance• Analyze customer data• Reduce cost• Innovation• Increase revenueRole of Information systemSource: Management Information system, 9th edition [4]Figure 5: Role of Information system
  • PM PM-Construction PM-IT Comparison References7 14/06/2013PM Approaches in Construction & ITSalama, BangeraPhases in Information technology life cycleSource: Jack T Marchewka, Information technology project management, 2003 [5]Figure 6: General Phases in IT product life cyclePlanning Analysis DesignImplementationMaintenance& Support• Project Model• Nonnumeric• Numeric• Scope• Budget• Schedule• Technology• SDLC model• Projectintegration• Stake holder• Procurement• Quality• Risk• Resource• Tools• Architecture• Networkdesign• Hardwareconfiguration• Database• User interface• Applicationprograms• Development/ configuration ofsystem• Testing• Installation• Training• Support• Documentation• Troubleshooting• Improvement• InnovationDisposal :A important phase in IT PM after the product becomes obsolete.
  • PM PM-Construction PM-IT Comparison References8 14/06/2013PM Approaches in Construction & ITSalama, BangeraSDLCPredictive lifecycleSpiralModelWaterfallmodelIncremental buildmodelPrototypingmodelRapidapplicationdevelopmentAdaptivesoftwaredevelopmentAgiledevelopmentModelExtremeProgrammingmodelScrumModelSystem development life cycle (SDLC)in Information TechnologySource: Information Technology, Project management, 4th edition [6]Figure 7: Types of SDLC models
  • PM PM-Construction PM-IT Comparison References9 14/06/2013PM Approaches in Construction & ITSalama, BangeraSource: [1] & [6]Life cycle comparison• Construction projects• Many mandatory interdependency between project activities. E.g.: Geotechnical surveyprior to land excavation etc.• Fewer types of life cycle• IT projects• Fewer mandatory dependency.• Many types of life cycle models.Figure 8: Life cycle comparison
  • PM PM-Construction PM-IT Comparison References10 14/06/2013PM Approaches in Construction & ITSalama, BangeraSource: [6] & [7]Nature of project• IT projects can be very diverse and is not a solution until it caters the business need.• IT projects can be a part of construction project. E.g.: ERP , telecommunication etc• Construction projects are less diverse compared to IT projects.• Construction projects are mostly standard driven. E.g.: JIS, DIN, IS, BS, IS0 etc.Figure 9: Nature of IT projects- Standish report
  • PM PM-Construction PM-IT Comparison References11 14/06/2013PM Approaches in Construction & ITSalama, BangeraSource: [6]Project management maturityFigure 10: PM maturity survey results by C. willian & Hook Kwak , 2000 .Knowledge Area Construction Information systemScope 3.52 3.25Time 3.55 3.03Cost 3.74 3.20Quality 2.91 2.88Human resources 3.18 2.93Risk 2.93 2.75Procurement 3.33 3.01Communication 3.53 3.211= Lowest maturity rating & 5=Highest maturity rating
  • PM PM-Construction PM-IT Comparison References12 14/06/2013PM Approaches in Construction & ITSalama, BangeraProcurement• Means acquiring goods / services from an outside source.• IT Projects: Term used is outsourcing• Construction Projects : Term used is purchasingPlanning ofpurchases &acquisitionContractplanningNotice totenderVendorselectionAdministeringcontractClosingthecontractFigure 11: Phases in procurementSource: [6]
  • PM PM-Construction PM-IT Comparison References13 14/06/2013PM Approaches in Construction & ITSalama, BangeraProject challenges and risksIT Projects:• IT investment challenge• Strategic Business challenge• Globalization• Infrastructure challenge• Ethics and security• Market, technology, processand people risksConstruction Projects:• Environmental risks• Financial risks• Material/ labour availability• Site accessibility• Land acquisition andcompensation• Force majeure eventsSource: [4] & [9]
  • PM PM-Construction PM-IT Comparison References14 14/06/2013PM Approaches in Construction & ITSalama, BangeraStakeholdersFigure 13: Stakeholders’ influence over time .Source: [8]Stakeholder influence on IT projectStakeholderinfluence onconstructionproject
  • PM PM-Construction PM-IT Comparison References15 14/06/2013PM Approaches in Construction & ITSalama, BangeraReferences[1] Prof. Dr. Florian Dörrenberg project management module scripts.[2] Gannett Fleming Inc., Construction Project management handbook, September 2009.[3] Chu Eo Ho, Project management, Department of civil and environmental engineering, MIT, 2003.[4] Kenneth C. L & Jane P. L, Management information system, 9th edition, 2006.[5] Jack T Marchewka, Information technology project management, “Providing measurableorganizational value”, 2003.[6] Kathy Schwalbe, Information technology project management, 4th edition, 2010[7] Standish Group [online] Available at: http://www.infoq.com/+articles/Interview-Johnson-Standish-CHAOS [Accessed: 18 may 2013].[8] ANSI, A guide to the project management body of knowledge, 3rd edition, 2004.[9] Florida international University, General contractor’s risk management practices, 2002.
  • Contact Details :Mina Salamaeng_minasamy@hotmail.comSandeep BangeraBangeraj.sandeep@gmail.comProject Management (PM) approaches inConstruction and IT